REA HISTORY 

The birth of REAs: In the 1940s, the Alberta government asked the Investor Owned Utilities (IOUs) to bring power to rural residents. The IOUs declined, citing cost as a factor.

With this reality, Alberta farmers decided to step up and formed co-operatives, also known as Rural Electrification Associations, to bring electricity to rural Alberta.

REA co-operatives come in all sizes and members own the electric distribution system they helped build. REA boards of directors, elected from the rural membership, regulate REA business and operate at cost.

Because REAs operate at cost, they provide a benchmark for electricity rates and tariffs. Provincial authorities consider REA at-cost rates when approving IOU rate structures.

The Central Alberta REA: CAREA originated from the amalgamation of 14 smaller REAs, between 1992 and 2005. With these amalgamations came economies of scale that benefited the membership by spreading the costs of running the electrical system over more services and lowering the per service costs.

As of 2011, CAREA has over 8,300 members, which equals about 18 per cent of the provincial REA membership, and covers a territory in excess of 8,300 kilometers, spanning 13 counties.

CAREA is currently the largest self-operating REA in the province, which means CAREA handles all aspects of providing electrical services to its members and also remains very proactive in industry and government relations.

CAREA was a founder of Prairie Power Ltd., an Alberta-based company that seeks out and purchases power at the most economical rates on behalf of CAREA members.

Not just in Alberta, Canada: In Canada, Rural Electrification Associations are only found in Alberta. But rural residents in the United States have been using this co-operative structure for decades and it continues to be very popular today.

The National Rural Electric Co-operative Association is a nationwide organization comprised of Rural Electrification Associations and other electrical companies that service rural areas in the United States. The association began in 1947 and operates from headquarters in Arlington, VA. As of November 2010, the organization had more than 900 companies as members. Together, its membership provides service for more than 42 million people in 47 states.